Will Well’s Fargo work back-assessed property taxes into my mortgage?

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I live in Texas and have recently been informed my property tax will jump to approximately $ 20,000 due to 5 years of omitted property! The appraisal district has only been assessing the $ 17,000 land value of my property without including the $ 116,000 home sitting on it!

Well’s Fargo manages my escrow account, which will be monumentally deficient in funds. Their terms state that I must pay the difference within 12 months, which would send me into bankruptcy and foreclosure. I have had a perfect payment record ever since I bought this home 7 years ago and my credit is very good, though my credit cards are maxed out. I have a VA loan guarantee of $ 35,000 and am concerned they might just cut their losses and get their money back through foreclosure. Do you think they would be compelled at all to work something out with me? I’m hoping they will work the taxes into my mortgage, but I’d love to maintain my current 4.75% interest rate if possible. Am I asking too much? They won’t be receiving the tax bill until October, so I’m nervous about when I should start discussing my options with them.

The loan we are applying for allows a few options when it comes to interest rates. The loan is the USDA Rural Development Loan. They said we can decide between the current Fannie Mae rate or the VA rate. We can also let the rate “float” in case it goes down between opening and closing of the loan and then lock it if it goes lower.

I’m trying to figure out what all this means and what I should do. Any suggestions?
We get to decide between those two rates, then the lender adds up to 1 point to that rate.

  1. Reply
    January 25, 2011 at 12:54 am


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  2. Reply
    January 25, 2011 at 1:01 am

    Your lender would have receive the bad new about the same time you did. They will tell you that it is and have always been your responsibility to make sure the taxes were correct.

    The good news is that this unfortunately happens all the time and lenders use foreclosure as a last ditch option. They will work with you to work out a payment plan. Lenders are dealing with so many foreclosures these days, yours will be handled so that you don’t go into foreclosure.

    There is one thing you should specifically ask the lender and get in writing. There are payment plans to get you caught up and there’s what called forbearance. Under forbearance they may report to the credit agencies that you are delinquent on your payment until you are caught up. While it is ultimately up to them (depending on their guidelines) on how to report this, you should avoid forbearance so your credit will not be affected.

  3. Reply
    January 25, 2011 at 1:35 am

    Who is “they” is it the bank. You can shop for loans at several banks, then choose the best option. also, do research on the web. Make sure it is a fixed rate. The lender adds up to one point probably as a fee for her/his servicing the loan. Shop around for the best rate and fees.

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